A Tesla Motors executive has recently provoked competing automakers to deliver on the US market better electric vehicles and also commented that automotive efficiency rules today should be modified to be stricter.
According to Diarmuid O’Connell, case vice president of business development, most of Tesla’s rivals “are focused on minimum compliance, lowest common-denominator behavior, and the vehicles reflect that,” and added the only exceptions were Tesla, Nissan and BMW. He was speaking at an auto-industry conference in northern Michigan. Automakers competing on the US auto market will be forced by the government to meet a standard for the average fuel economy of 54.5 miles (87.7 kilometers) per gallon by 2025. The standard will be under scrutiny from a mid-term review two years from now in 2017. Tesla would see beneficial if the standard is toughened, in a move that would benefit the company and the electric car market while putting additional strain on the crop of traditional automakers. The Tesla manager also reminded that if federal mileage standards, which first appeared as a consequence of the 1973 oil embargo, would have kept their ascending trajectory of annual gains of 4 percent, vehicles today would already have averaged 75 miles per gallon.
“We’re living in a time of cheap gasoline, but this is probably an ephemeral event,” he added. “The cost of externalities — foreign oil, climate change — how do you price that into the market?” Tesla is the youngest publicly traded US automaker and only manufactures and sells fully electric, battery-powered, cars – the Model S luxury sedan and now plans to start selling its first crossover, the Model X, later on during this quarter. The Palo Alto, California-based company has announced a sales forecast of 55,000 units for the year.